site.btaParliament Establishes Electricity System Security Fund

Parliament Establishes Electricity System Security Fund

Sofia, July 22 (BTA) - Parliament Wednesday established an
Electricity System Security Fund by voting some amendments to
the Energy Act on second reading.
 
The financial resources in the Fund will be used to offset the
shortage of financing in the National Electric Company (NEK) for
 purchase of electricity under the long-term agreements with
renewable source power plants, high efficiency cogeneration of
power and heat, and the two US-owned TPPs in the Maritsa East
basin. Payments to the public supplier will be on a monthly
basis. The chairperson will be nominated by the Minister of
Energy, and the Environment and Water Minister and the Finance
Minister will nominate one member each.
 
The Fund is to raise 5 per cent contributions on the monthly
revenues of all energy producers. The proceeds from the sale of
greenhouse gas allowances will also go into the Fund. The funds
will be used to maintain the operation of the Fund and to offset
 the costs of the public supplier.
 
The monthly 5 per cent contributions will be based on electric
power producer revenues from sold electricity (VAT excluded); as
 well as of importers of electric power for the domestic market
(VAT excluded).
 
MP Ramadan Atalai of the Movement for Rights and Freedoms said
they were concerned this Fund could prove anti-constitutional.
He recalled that NEK's deficit stands at 70 million leva for
this month alone in which the new electricity prices were put
off.
 
MP Delyan Dobrev of GERB pointed out that currently obligations
to the public go to NEK because that is the figure of the public
 supplier. When the market is liberalized NEK will no longer be
public supplier and will not collect these revenues from
obligations to the public. They will be collected by the Fund
and will be paid to all producers who, for one reason or
another, have preferential prices.